Used EVs Will Face Shocking Depreciation

Electric vehicles have been on the market for a while now and some of them are beginning to show up on used car lots. Studies are now being done to determine depreciation in the value of these vehicles and the news is not good. A study by Kelley Blue Book, at the request of USA Today, projects their depreciation figures after five years for all-electric and hybrid vehicles.

According to KBB’s analysis, the 2014 Chevy Spark would worth only 28% of its original selling price of $28,305 while its gas-powered counterpart will retain 40% of its price. The electric 2014 Ford Focus sells for $35,995 new and will be worth only 20% of that at resale. A gasoline 2014 Focus keeps 36% of that value. The Toyota Plug-In Prius did somewhat better at 35% which is only two points under its counterpart. Even though the Nissan Leaf was the best-selling electric vehicle for 2013, the 2014 model’s expected to hold only a paltry 15% of the selling price. It was one of the worst in show along with the Fiat 500e and the smart fortwo electric drive.

Hybrids, such as the 2014 Chevy Volt, fared better due to the option of using gasoline for longer drives. Kelly Blue Book named the recently debuted Honda Plug-In Hybrid the Resale Value Winner for 2014.

If you own an electric vehicle you are looking to trade or sell, don’t lose heart. These vehicles came with a $7500 tax credit from the government along with other state and local incentives in some cases so the purchase price was far lower than MSRP. This means that you are likely to get back more than 20% of what you paid for it. The same holds true if you leased. Lease prices for electric automobiles were very low in order to move the product so you are sure to recoup more than a fifth of your investment.

Electric vehicle technology is still in the early stages and is projected to continue to grow in the future. Whether by choice or force we will have to just go with it eventually. As the technology improves the cars will hold their value more comparably with their gas powered siblings. As proof of their faith in the future of this industry Tesla offers a guarantee that their vehicles will retain their value.